Published 4:00 am, Thursday, April 29, 1999

1999-04-29 04:00:00 PDT STATE -- A coalition of 26 minority civil rights and business groups has lined up behind Lieutenant Governor Cruz Bustamante's stand against fellow Democratic Governor Gray Davis over Proposition 187 -- hinting at a rift with potentially profound implications for the party's future.

In an open letter to Bustamante yesterday, the leaders of major African American, Asian and Latino organizations lauded the lieutenant governor's boldness for "standing tall for the rights of all Californians" and expressing a view that "many other elected officials share but fear to publicly state."

"Had the lieutenant governor and governor of California spoken out in a similar fashion in 1941-42," the church and civic leaders wrote, "our nation might have avoided the incarceration of hundreds of thousands of loyal Japanese American citizens."

Robert Gnaizda, policy director of the San Francisco-based Greenlining Institute, who signed the letter, said Bustamante is seen "as an alternative leader to express the growing concerns of the minority community. We saw it as a governor unwilling to fulfill his responsibility to the natural Democratic constituency."

The growing support for Bustamante in his opposition to Davis could reflect some key demographic trends that will shape Democrats' fortunes in California in the crucial elections ahead, political insiders said.

"I think the essence of the issue is that Cruz is somebody who clearly, clearly understands the new California electorate -- and Gray is monumentally cautious," said state political consultant Leo Briones, who specializes in Latino and minority voter issues. "At the moment, (Bustamante) appears to be the most courageous politician in California."

But Davis spokesman Michael Bustamante, who is no relation to the lieutenant governor, said his boss' support among Latino legislators and voters remains unquestioned:

"Governor Davis was elected by a 20-point margin, and he continues to enjoy extraordinary support among the Latino community. It is simply fiction on the part of some, in this odd campaign of sorts, to try and make a point that doesn't exist."

The rumble between the state's two top Democrats began when Davis, who had the option of pursuing an appeal to uphold Proposition 187 or dropping it, instead asked mediators at the U.S. Court of Appeals in San Francisco to work out a compromise. The 1994 initiative called for barring illegal immigrants from government services, including public school education. But in a surprise move, Bustamante publicly opposed Davis' mediation attempts as "a matter of principal."

The blowup intensified this week when the lieutenant governor was served notice that his staff parking spaces in Sacramento were pulled; Davis staff members said that was because of legal and construction mandates, and critics suggested it was public punishment.

With minorities making up fully one-third of the voters in the past gubernatorial election, "what's at stake may be the ability of Davis and the Democratic Party to hold onto this important constituency, the new force that put them in power -- Latinos, Asians and blacks," Lee said.

"If he loses his core nonwhite support in the next election, particularly with Latinos, and if (Texas Governor) George W. Bush comes in here pushing a doctrine that he welcomes Latinos," Cain said, "you could have Hispanics staying home or crossing over -- not just at the top of the ticket, but all the way down."

But Assembly Speaker Antonio Villaraigosa, the first Latino leader to speak out against an appeal of Proposition 187, defended Davis' authority to choose mediation. "While we (are) in mediation, I will do everything possible to support (Davis' attempts at) resolution," Villaraigosa said. "But I would hope at the end he will drop (the appeal on ) the one issue that has been constitutionally addressed, and that's the issue of teaching undocumented children." He predicted that if that happens, "it will all be water under the bridge."

But the deep feelings illustrate that Proposition 187 remains "the fault line" in modern California politics, said political consultant Richie Ross, whose clients include the lieutenant governor. "It was a heinous, racist campaign. And what drove immigrants to become citizens was the demonization of a whole class of people," he said. "When you politicize that and humiliate a group of people, there's nothing to mediate. They're never going back."

Sacramento insiders say that Davis, hoping to make amends, has already planned a dinner with the Latino caucus at the governor's mansion. "He has told folks that he's ready to get his a-- kicked in this meeting and that he's ready to talk candidly," said one. "He sees people going nuts."